India Apprehends Crypto Exchange Admin with Alleged US Sanction Violations

Aleksej Besciokov, connected to crime-related crypto activities, faces extradition as part of US-led investigations into illicit cryptocurrency operations.

Authorities in India have arrested Aleksej Besciokov, a cryptocurrency exchange administrator thought to have aided cybercriminals in laundering money and breaching sanctions set by the United States. Besciokov, who holds Lithuanian citizenship but resides in Russia, was taken into custody in Kerala by India’s largest investigative agency on Tuesday, following a direct request from the US Justice Department (DOJ).

Besciokov was implicated as one of the key figures at Garantex, a Russian cryptocurrency exchange, and is accused of overseeing, scrutinizing, and authorizing the transactions conducted through the platform. His current custody status is undisclosed, and he has yet to provide public statements regarding the allegations against him. The agency responsible for his arrest, the Central Bureau of Investigation (CBI), shared that a provisional arrest warrant was issued in response to a request from US authorities. Following his detention, Besciokov is expected to appear before a court in Delhi; however, the timeline for his possible extradition to the US remains uncertain.

Previously, the DOJ had coordinated with law enforcement agencies from Germany and Finland to dismantle the online infrastructure supporting Garantex. They reportedly identified that the exchange processed transactions amounting to at least $96 billion (approximately £74.10 billion) since its inception in 2019, with millions linked to criminal enterprises, including cyberattacks, drug trafficking, and terrorism financing.

US authorities have accused Besciokov of violating laws concerning sanctions and operating an unauthorized money transmitting business as a part of their investigations. Just last week, he, alongside Garantex's Russian co-founder Aleksandr Mira Serda, faced money laundering charges from the US. Following its sanctions by the US Treasury in 2022, Garantex reportedly restructured its operations to avoid regulatory scrutiny while attempting to entice American businesses into transacting with them, according to DOJ reports.